The Possible Buyout of Capcom Explained!

What does the Ordinary General Meeting of Shareholders of Capcom mean?

Following Capcom’s general meeting regarding their takeover defense agreement, a potential third party acquisition may be in store for the 31 year old company.

Capcom’s found its shareholders voting to end the company’s takeover defense agreement which leaves the company open for a potential buy out by purchasing more than 50% of their shares. It’s common for company’s to have some countermeasure in place to prevent any other company taking over a company’s assets. When regards to Capcom’s situation, they originally had such a countermeasure in place since 2008. Such a policy required a yearly vote from the “Ordinary General Meeting of Shareholders” but was unable to renew it due to lack of majority vote. For this very reason, indicating that their shareholders are in in search for a drastic change.

The takeover defense proposal was not approved because this proposal did not receive majority of voting rights as required.

2. Upcoming actions

Despite of non-approval of Renewal of Takeover Defense at the 35th Ordinary General Meeting of Shareholders, Capcom will continue to focus on further preserving and enhancing corporate value and common interests of its shareholders. If there is any large-scale purchaser of Capcom stock, we will react to make necessary measures within the admissible limits of applicable laws and regulations. In addition, we will react to take steps to ensure disclosure of the position of the board of directors and other information and that there is sufficient time for shareholders to examine the proposed large-scale purchase and reach a decision.

Much like other corporations, Capcom is a shareholder company and, “preserving and enhancing corporate value” and the interests of its shareholders. The idea of a “large scale purchaser” overtaking majority of Capcom’s stock means any company that purchases over 50% of it’s total shares would have a, in a sense, partner ownership of Capcom’s past and future IP, but only in part. They’d also have some influence on some of Capcom’s choices being a major shareholder of the company. Capcom will still be the primary franchise holder.

Though it would be foolish for any company to not have a contingency plan if such possibility were to come about, rest assured that all possible plans are being considered. Capcom’s Press Release explained that if a takeover were to happen that, “[Capcom] will react to make necessary measures… [within the] applicable laws and regulations.” The board of directors will do what they can to prevent a “take over” if able and provide “sufficient time for shareholders to examine the proposed large scale purchase” and decide the best choice of action, according to their public announcement.

As or right now, those franchise will remain with Capcom and it’s very doubtful that they will sell them off unless they have no alternative, as they have explicitly explained, “Capcom will continue to focus on further preserving and enhancing corporate and enhancing corporate value..” At no time has Capcom made public they they are selling any of their Intellectual Properties, though many have speculated that they will. As was mentioned before, those franchises will remain with Capcom but if things don’t improve, it’s very possible for them to sell them.

Depending on who purchases majority of Capcom’s stock, it’s very possible that the company will be restructured internally and reposition certain employee to better suit their strengths. Expansions could also take place as well closing of a few studios. Though during that transition, some games could be delayed and possibly canceled.

Some Capcom titles may find them being developed alongside other studios, but like it was mentioned before, it depends on who purchases majority of Capcom’s stock. On the other hand, it’s possible that any changes won’t be noticed by the public and only the employee’s of Capcom will feel the change.The overall value of the company may be revalued either as a company as a whole or their franchise.